TLDR;
This YouTube video by Sunday Investing discusses upcoming IPOs, focusing on four companies: Star Imaging (SME), Connplex Cinemas (SME), All Time Plastics (Mainboard), and JSW Cement (Mainboard). The speakers share detailed insights into each company's business model, financials, growth prospects, and potential risks, while emphasizing that their analysis is not financial advice. They also discuss their personal investment plans for these IPOs, with JSW Cement and Connplex Cinemas getting more favorable mentions.
- Star Imaging: Healthcare company providing diagnostic services, faces competition and payment delays.
- Connplex Cinemas: Cinema chain focused on tier 2/3 cities, asset-light model, but sector faces disruption risks.
- All Time Plastics: Plastic houseware manufacturer with strong export focus, but growth may be limited.
- JSW Cement: Cement manufacturer with green initiatives, potential for growth, but complex financials.
Opening Remarks [0:00]
The video starts with a welcome to the primary market chatter, focusing on IPOs for the second week of August. The speakers clarify that this is part one of a two-part series, with part one covering four IPOs and part two focusing on Bluestone. They emphasize that the session is for informational purposes only and not financial advice. Viewers are urged to conduct their own research and consult financial advisors before making any investment decisions. The speakers also mention their YouTube channel and its membership feature, where they plan to offer more exclusive content and interactions.
Star Imaging (SME) [4:01]
Star Imaging, incorporated in 2004, is a healthcare company providing diagnostic services like X-rays, ultrasounds, CT scans, MRIs, and lab tests. The IPO is ₹70 crores, entirely a fresh issue, with a market cap of ₹250 crores. The company's revenue is ₹84 crores and profit after tax (PAT) is ₹16 crores. Sachin explains that Star Imaging started in 1978 as a family business and now operates 23 centers, primarily in Delhi and Uttar Pradesh. 80% of their revenue comes from pathology and 20% from radiology. 38% of revenues are from B2C, 57% from B2G (government contracts), and the rest from B2B. The company bids for government tenders, winning some and losing others. FY23 revenues were ₹58 crores with 10% EBITDA, while FY25 revenues reached ₹84 crores with 35% EBITDA. Risks include intense competition and payment delays in the B2G segment. IPO funds will be used for debt repayment, upgrading centers, and working capital. The IPO is priced at 15-16 times trailing earnings and 11 times forward earnings.
Connplex Cinemas (SME) [13:43]
Connplex Cinemas, incorporated in 2015, develops theaters and enters into franchise agreements for film exhibitions, primarily in tier 2 and tier 3 cities. The IPO is ₹90 crores, all fresh issue, with a market cap of ₹338 crores. FY25 revenue is ₹97 crores and PAT is ₹19 crores, making the IPO priced at around 17 times earnings. Rohit explains that Connplex operates on a franchise model, providing projectors, screens, and technology, while franchisees handle interiors and civil work. Revenue is shared, with 80% going to the franchisee and 20% to Connplex. They aim to build an asset-light cinema chain. The company currently has 66 screens across 25 cinemas and plans to expand to 200 screens by FY27. Revenue sources include tickets, F&B, advertising, and corporate bookings. Last year, they did ₹95 crores in revenue with ₹19 crores PAT. Funds from the IPO will be used to set up an office, purchase technology, and for working capital. Risks include the shift to OTT platforms and potential COVID-related shutdowns.
All Time Plastics (Mainboard) [32:03]
All Time Plastics, incorporated in 1971, manufactures plastic houseware products, mainly for B2B white-label clients, but also offers products under their own brand for B2C customers. The IPO is ₹400 crores, with ₹280 crores fresh issue and ₹120 crores OFS. FY25 revenue is ₹560 crores and PAT is ₹47 crores, pricing the IPO at around 40 times earnings. Sachin mentions that All Time Plastics is based in Maharashtra and managed by three brothers. They primarily supply to global retailers like IKEA, Marks & Spencers, and Walmart. 92% of their revenues are from white-labeling and 8% from their own brand. 85% of their revenues are from exports. They operate three manufacturing units with a combined capacity of 33,000 metric tons. FY23 revenues were ₹443 crores with 17% EBITDA, while FY25 revenues were ₹560 crores with 18% EBITDA. IPO funds will be used for repayment of borrowings and new molding machines. Risks include reliance on IKEA (60% of revenues) and the shift to eco-friendly materials.
JSW Cement (Mainboard) [43:57]
JSW Cement, incorporated in 2006, manufactures green cement and is committed to sustainability. They operate seven plants across the country with a total grinding capacity of 20 million metric tons per annum (MMTPA). The IPO is ₹3600 crores, with ₹1600 crores fresh issue and ₹2000 crores OFS, valuing the company at ₹20,000 crores. FY25 revenue is ₹6,000 crores, but they had a loss of ₹160 crores. The speaker explains that JSW Cement is India's eighth-largest cement company and one of the fastest-growing. They produce blended cement and GGBS (Ground Granulated Blast Furnace Slag). The company has the lowest carbon dioxide emission intensity in the world. They have a large distribution network with 4650 dealers and 158 warehouses. IPO funds will be used for capex in Nagaur, Rajasthan, and debt repayment. The company has several subsidiaries and associate companies, including JSW One Platforms, a unicorn company. The speaker notes that FY25 was a tough year for cement companies, but Q1 has been strong.
Closing Remarks [1:10:30]
The speakers discuss their investment plans for the IPOs. Sachin plans to apply for Star Imaging, noting the valuation gap. Rohit will apply for Connplex Cinemas, viewing it as a long-term hold. Sachin feels All Time Plastics is decent but expensive. The speaker will apply for JSW Cement, citing its potential for growth and undervaluation in the cement sector. They emphasize that these are their personal plans and not financial advice. They also mention upcoming videos on Bluestone Jewelry and Regal Resources. The video concludes with a reminder about their YouTube channel and membership program.